HAL (GODL-India), GODL-India, via Wikimedia Commons
Hindustan Aeronautics Limited (HAL), the state-owned aerospace and defence giant, announced today, citing a Ministry of Defence (MoD) press release and a regulatory filing with the stock exchanges.
The deal, valued at over Rs. 62,370 Crore excluding taxes, is for the supply of 97 Light Combat Aircraft (LCA) Mk-1A to the Indian Air Force (IAF).
This major acquisition is set to significantly bolster the IAF’s operational capabilities and represents a major boost for India’s domestic manufacturing ecosystem.
Signed on September 25, 2025, the contract covers 97 LCA Mk1A aircraft, which comprises 68 fighter jets and 29 twin-seater variants, along with associated equipment.
According to the company’s filing, the delivery of these advanced aircraft is scheduled to commence during the 2027-28 fiscal year and will be completed over a six-year period.
This procurement is being processed under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, underscoring the government’s strong emphasis on indigenisation and self-reliance in the defence sector.
The LCA Mk1A is touted as the most advanced variant of the indigenously designed and manufactured fighter aircraft. The new jets will feature an indigenous content of over 64% and will incorporate 67 additional items beyond the previous LCA Mk1A contract signed in January 2021.
Key upgrades include advanced, indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar and the Swayam Raksha Kavach electronic warfare suite.
The project is expected to have a substantial positive impact on the national economy.
Production will be supported by a robust vendor base of nearly 105 Indian companies directly involved in manufacturing components.
Furthermore, the project is projected to generate close to 11,750 direct and indirect jobs annually for the duration of the six-year production cycle, providing a significant stimulus to the domestic aerospace ecosystem.
This information was formally disclosed to the stock exchanges in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015. The regulatory filing was signed by Shailesh Bansal, Company Secretary & Compliance Officer for Hindustan Aeronautics Ltd.
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